Demonstrations and protests ripped across Indonesia over the past week. Rocks were thrown at riot police wielding tear gas and water cannon, regional parliaments and police headquarters were set on fire, and the houses of legislators, including that of Finance Minister Sri Mulyani Indrawati, were targeted by looters, who were seen running off with designer handbags and even bathtubs.
The fury heightened after a video circulated of a 21-year-old motorcycle ride-hailing driver named Affan Kurniawan being hit by an armoured police vehicle, which rather than stopping then ran him over. Affan later died of his injuries in a Jakarta hospital.
The cause of the rage? The protests initially started outside the national parliament in Jakarta after reports that the country’s MPs had granted themselves a huge monthly housing allowance on top of their salaries. Coming at a time when a shrinking middle class is facing a cost-of-living crisis, youth unemployment is more than 16 per cent and the effects of President Prabowo Subianto’s populist policies that are meant to help the poor have not been fully felt, this lit the fire of anger against elites.
The latter, in the popular imagination, most certainly includes MPs, some of whom did not help their image by being filmed dancing in parliament after receiving these new perks, which also included a monthly rice allowance.
The streets are calm for now, but several people have died in what has been the worst violence the country has seen since the late 1990s. Indonesia has always been beset by terrible inequality. The advent of social media has only served to make the extravagances of the wealthy all the more obvious to those earning an average monthly wage of $400. Their discontent is an urgent challenge for Mr Prabowo – who, to his credit, acted decisively once the scale of the uproar became clear.
Last Friday, the day after Affan died, the President visited the family home to offer his personal condolences. Photos and film of Mr Prabowo hugging the young delivery driver’s parents, who were crying as he attempted to comfort them, were powerful and moving images of the former special forces general who has transformed himself into a kind of patriarch, by turns grandfatherly and stern, of the nation.
On Sunday, he gave a televised address in which he said the MPs’ perks – including the housing allowance – would be scrapped. While instructing the military and police to take firm action against arsonists and looters, he ordered an investigation into Affan’s death, and seven officers have been detained.
By Tuesday, the current situation was considered stable enough for Mr Prabowo to fly to China; having cancelled his participation at the Shanghai Co-operation Organisation gathering over last weekend, he arrived in Beijing in time for the Victory Day military parade on Wednesday morning.
Some may question the importance of these events. After all, demonstrations and protests are common in many South-East Asian countries, and the reported fatalities, while tragic, were confined to the single digits. But deadly riots have a special significance in Indonesia.
When commentators make comparisons to the late 90s, they are referring to the mass violence and civil unrest of 1998, which led to the resignation of then-president Suharto and the downfall of his New Order establishment that had been in power for 32 years. In a perceptive analysis, the veteran Malaysian journalist Wong Chun Wai wrote this week that protests in neighbouring Malaysia tend to be “a carefully negotiated message” from a majority middle class that doesn’t really want to rock the boat. In Indonesia, however, they are a “battle cry” that “have often carried the weight of national transformation”.
The Jakarta Post made the link explicit in an article titled “Not a ’98 repeat” on Monday. The editorial board commended Mr Prabowo’s Sunday address for having “struck several correct notes”.
Making all Indonesians feel they have a share of the country’s economic growth will be a battle
“He pledged respect for peaceful protest, cited international human rights conventions and openly condemned excessive police force,” they wrote. Noting that legislators had been rebuked for making arrogant statements about the riots, that the perks had been revoked, and that “wasteful overseas junkets” would also not be allowed, they said that the President had “also offered something rare in Indonesian politics: accountability”.
Going forward, however, Mr Prabowo has a lot that the country needs him to deliver while he must simultaneously negotiate a tricky balancing act. He is personally popular, enjoying approval ratings of 81 per cent, according to one survey in May. Legislators and elites are not. Anger at MPs has not so far transferred itself to the President, although insulating himself against a body in which his administration has a vast majority – and so can shape the order of business – may be a challenge.
Moreover, Mr Prabowo comes from an elite background himself. His father served as a minister under both Indonesia’s first two presidents, Sukarno and Suharto – the latter of whom was once his father-in-law (Mr Prabowo separated from Suharto’s daughter in 1998) – and his brother is a very wealthy businessman.
But by 2024, during his third – and ultimately victorious – run for the presidency, Mr Prabowo successfully projected an image of himself as a great uncle or grandfather of the nation, as I noted above. His confident ease with members of the public from all walks of life and winsome videos with his cats earned him a commanding 59 per cent of the vote against two rival candidates.
A president in such a situation can still distance himself from unpopular elites and legislators; indeed, Mr Prabowo did exactly that in his speech last Sunday. But there are many nettles he will have to grasp – including to tackle the country’s endemic corruption, institute any number of reforms and slash the “benefits” to which many officials and businessmen feel entitled – in order to deliver for the ordinary Indonesians who voted for him.
In his televised address, Mr Prabowo said that his government is “determined to always fight for the people’s interests, including those of the most vulnerable and marginalised”. Many of those showed their frustration and desperation last week. Bringing them back from the brink and making all Indonesians feel they have a share of the country’s economic growth will be a battle – and one perhaps harder than any Mr Prabowo faced in his years at the top of the military.
Match info
Deccan Gladiators 87-8
Asif Khan 25, Dwayne Bravo 2-16
Maratha Arabians 89-2
Chadwick Walton 51 not out
Arabians won the final by eight wickets
Turkish Ladies
Various artists, Sony Music Turkey
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Sucker%20Punch%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%202%20to%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
Abu Dhabi Sustainability Week
WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
%3Cp%3E%E2%80%A2%20Looming%20global%20slowdown%20and%20recession%20in%20key%20economies%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Russia-Ukraine%20war%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Interest%20rate%20hikes%20and%20the%20rising%20cost%20of%20debt%20servicing%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Oil%20price%20volatility%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Persisting%20inflationary%20pressures%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Exchange%20rate%20fluctuations%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shortage%20of%20labour%2Fskills%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20A%20resurgence%20of%20Covid%3F%3C%2Fp%3E%0A
The biog:
Favourite book: The Leader Who Had No Title by Robin Sharma
Pet Peeve: Racism
Proudest moment: Graduating from Sorbonne
What puts her off: Dishonesty in all its forms
Happiest period in her life: The beginning of her 30s
Favourite movie: "I have two. The Pursuit of Happiness and Homeless to Harvard"
Role model: Everyone. A child can be my role model
Slogan: The queen of peace, love and positive energy
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UNSC Elections 2022-23
Seats open:
- Two for Africa Group
- One for Asia-Pacific Group (traditionally Arab state or Tunisia)
- One for Latin America and Caribbean Group
- One for Eastern Europe Group
Countries so far running:
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Match info
What: Fifa Club World Cup play-off
Who: Al Ain v Team Wellington
Where: Hazza bin Zayed Stadium, Al Ain
When: Wednesday, kick off 7.30pm
Iraq negotiating over Iran sanctions impact
- US sanctions on Iran’s energy industry and exports took effect on Monday, November 5.
- Washington issued formal waivers to eight buyers of Iranian oil, allowing them to continue limited imports. Iraq did not receive a waiver.
- Iraq’s government is cooperating with the US to contain Iranian influence in the country, and increased Iraqi oil production is helping to make up for Iranian crude that sanctions are blocking from markets, US officials say.
- Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, pumped last month at a record 4.78 million barrels a day, former Oil Minister Jabbar Al-Luaibi said on Oct. 20. Iraq exported 3.83 million barrels a day last month, according to tanker tracking and data from port agents.
- Iraq has been working to restore production at its northern Kirkuk oil field. Kirkuk could add 200,000 barrels a day of oil to Iraq’s total output, Hook said.
- The country stopped trucking Kirkuk oil to Iran about three weeks ago, in line with U.S. sanctions, according to four people with knowledge of the matter who asked not to be identified because they aren’t allowed to speak to media.
- Oil exports from Iran, OPEC’s third-largest supplier, have slumped since President Donald Trump announced in May that he’d reimpose sanctions. Iran shipped about 1.76 million barrels a day in October out of 3.42 million in total production, data compiled by Bloomberg show.
- Benchmark Brent crude fell 47 cents to $72.70 a barrel in London trading at 7:26 a.m. local time. U.S. West Texas Intermediate was 25 cents lower at $62.85 a barrel in New York. WTI held near the lowest level in seven months as concerns of a tightening market eased after the U.S. granted its waivers to buyers of Iranian crude.
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
The five pillars of Islam
More Expo 2020 Dubai pavilions:
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.